The demand function for vinyl records is given by: Qd = 212-3p. Further the supply of vinyl records is given by: Qs = 4p. What is the (point) price elasticity of demand in the market equilibrium?

To find the price elasticity of demand at the market equilibrium, we first need to find the equilibrium price and quantity. We do this by setting the quantity demanded equal to the quantity supplied and solving for the price.

The demand function is Qd = 212 - 3p and the supply function is Qs = 4p. Setting these equal to each other gives:

212 - 3p = 4p 212 = 7p p = 212 / 7 p = 30.29

Substituting p = 30.29 into either the demand or supply equation will give us the equilibrium quantity. Using the demand equation:

Qd = 212 - 3(30.29) = 122.13

Now that we have the equilibrium price and quantity, we can calculate the price elasticity of demand. The formula for price elasticity of demand is:

Ed = (dQ/dP) * (P/Q)

Where dQ/dP is the derivative of the demand function with respect to price. The derivative of Qd = 212 - 3p is -3.

So the price elasticity of demand at the equilibrium is:

Ed = -3 * (30.29 / 122.13) = -0.74

So, the price elasticity of demand at the market equilibrium is -0.74. This means that a 1% increase in price will result in a 0.74% decrease in quantity demanded.